Automated and streamlined interface cuts integration of external solutions required to meet AML requirements
Blockchain security firm CoolBitX has unveiled Sygna Hub, the latest AML/CTF-focused product to help virtual asset service providers (VASPs) meet evolving crypto regulations.
The comprehensive new API-based solution provides an easy-to-use platform boasting a modular integration of optional AML services from industry leaders such as Chainalysis and Elliptic, including advanced blockchain analytics and sanction screening, as well as Sygna Bridge, the Travel Rule protocol that is made to be interoperable with other protocols, like TRISA, through the Hub solution.
Changing regulatory landscape for VASPs
Sygna was launched in 2019 in response to the Financial Action Task Force’s Recommendation 16 update that mandates Travel Rule compliance for VASPs. Since then it has built out a Sygna Alliance network of VASPs and collaborated with the world’s biggest AML firms, including Chainalysis, Elliptic, CipherTrace, Merkle Science and ComplyAdvantage.
“In the path toward mass institutional adoption of crypto, integration still remains a major challenge for the industry,” said Mriganka Pattnaik, Co-founder & CEO of Merkle Science. “Travel Rule, sanctions screening, and blockchain analytics all play key roles in the fight against illicit activity in crypto. The Sygna Hub platform allows for integration and communication between previously siloed parts of this objective and Merkle Science is glad to be an active member of this initiative.”
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With FATF’s latest reviews and updates to its Risk-Based Approach to Virtual Assets and VASPs adding new complexity to the regulatory landscape for cryptocurrencies, Sygna has been broadening the scope of its service offering to better meet the needs of crypto companies.
Michael Ou, Founder/CEO of CoolBitX said: ” The Sygna team has again demonstrated that they fully understand VASPs’ compliance pain points and how to alleviate them through intelligent product design. Sygna Hub represents our most ambitious AML endeavour as of yet. It has required many months of hard work, where we had to not only leverage our existing proprietary travel rule protocol Sygna Bridge, but also combine forces with industry leaders to create something unique for the greater good of the crypto industry as it faces evolving regulatory requirements.”
Sygna Hub and Sygna Gate, its simplified browser-based version, constitute the end result of these efforts, providing VASPs with the tools to build a robust compliance system to fulfill their regulatory duties.
Juntao Zhu, CEO/Co-Founder of Hodlnaut, a Sygna Hub client, said: “Hodlnaut is elated to be partnering with Sygna to comply with the regulatory changes in Singapore. We are tirelessly working towards providing a great user experience and collaborating with Sygna will help us achieve the same.”